Mohammad Ali Jinnah UniversityTERM REPORT

Presented to:

Dr. Rizwan ul Hassan

Presented by:Asadullah Damani

Ayyaz Masood Syed Zakir Ali

Major Imports of Pakistan & its impact on Economy

Pakistani Economy

The economy of Pakistan is the 26th largest in the world in terms of purchasing power parity (PPP), and 41st largest in terms of nominal Gross Domestic Product. Pakistan has a population of over 190 million (the world's sixth largest), giving it a nominal GDP per capita of $4,993, which ranks 133th in the world. However, Pakistan's undocumented economy is estimated to be 36% of its overall economy, which is not taken into consideration when calculating per capita income

Pakistan's main Trading Partners

Country Percentage of Imports Percentage of Exports Percentage of Total Trade

China 19.7 11.1 16.9

European Union 10.4 18.2 13.0

United Arab Emirates 12.1 8.5 10.9

Saudi Arabia 12.2 8.5 9.0

United States 3.2 13.6 6.7

Kuwait 6.3 0.07 4.4

India 3.7 2.1 3.2

Malaysia 3.9 0.9 2.9

Japan 3.6 1.6 2.9

Iran 3.4 1.8 2.9

Afghanistan 0.3 7.6 2.8

Comparison Import

• Imports in Pakistan increased to 410184 PKR Million in October from 363131 PKR Million in September of 2015.

• Imports in Pakistan averaged 61043.08 PKR Million from 1957 until 2015, reaching an all time high of 469537 PKR Million in August of 2014 and a record low of 96 PKR Million in April of 1959.

Export • Exports in Pakistan increased

to 180653 PKR Million in October from 180491 PKR Million in September of 2015

• Exports in Pakistan averaged 35877.84 PKR Million from 1957 until 2015, reaching an all time high of 275483 PKR Million in September of 2013 and a record low of 51 PKR Million in April of 1958.

Imports of Pakistan

Pakistan’s imports have generally been greater than its exports. Like exports Pakistan’s imports are highly concentrated to few items namely, Machinery, Petroleum Products, Chemicals, Transport Equipment, Edible oil, Iron and steel, Fertilizers and Tea which account for more than 70% of total import

Imports of Pakistan

Major Imports Main imports are • Mineral fuels 16 % • Manufactured goods 16 %

Others include: • Miscellaneous articles12% • Beverage and tobacco 12% • Edible Oils and fats 10% • Crude materials except fuel 09% • Chemicals 09%• Machinery 08%• Food and live animals 07%

Top Imports – Product wise

Refined Petroleum ($8.69B)Crude Petroleum ($4.98B)Palm Oil ($1.83B)Scrap Vessels ($859M)Raw Cotton ($766M)

Major Imports – Country wise

United Arab Emirates ($7.3B)China ($7.26B)Saudi Arabia ($3.75B)Kuwait ($3.68B)India ($2.01B).

Machinery

• Pakistan imported machinery and Equipment worth $324 million IMPORT of machinery and equipment during 2014.

• Country's overall IMPORT of raw material used for making wide range of machinery items, also recorded highest increase.

• Imported from third country through Dubai, Saudi Arabia and Qatar and has risen by over 43 percent.

Automobiles

• Pakistani people usually prefer cheap Japanese Vehicles.

• The giant Japanese Automobile brands e.g. Toyota, Daihatsu, Suzuki, Mazda, Nissan, Honda etc have always manufactured best car products which are not only demanded at maximum in Pakistan but also at global level.

Iron and Steel

• The locally produced hot roll material is available at Rs. 57,000 per ton where as the same Imported from Ukraine is sold at Rs, 58,500 per ton in the local market.

• The steel consumption averages between four to five million tons annually. For instance, in the last year, steel consumption stood at about 4.2 million tons, in which Pakistan Steel Mills contributed about 25% by production.

Crude Oil

• The share of Crude oil in Pakistan’s total import is 23%. We import 82% of our needs.

• Pakistan’s crude oil import is the prime cause of our Trade Deficit and Current Account Deficit.

Exports $31.4B rank 70th in worldImports $44.8B rank 56th in world

The import of Pakistan is greater than export. Big revenue is consumed in importing good every year, even raw material has to import

for industry. If we decrease import and establish own supply chains from our country natural resources the people will have better

opportunities to earn.

Balance of Trade

• As of 2015 Pakistan had a negative trade balance of PKR22.95B in net imports. As compared to their trade balance in 1995 when they still had a negative trade balance of $664M in net imports.